The raging disagreement over the actual amount that is being owed the Nigerian National Petroleum Corporation (NNPC) took a new dimension last week as the Federation Account Allocation Committee (FAAC) has approved that an independent audit firm looks into the books of the oil agency.
The NNPC is claiming N1.155 trillion as what it has spent on subsidy of importation of petroleum products into the country, but the FAAC which is chaired by the Minister of State for Finance, Mr Remi Babalola is kicking against that figure.
Shipping Position Weekly recalls that the Group Managing Director of NNPC, Mr. Sanusi Barkindo, had while appearing before the FAAC members on May 14 confirmed that the corporation was owing Federation Account about N450.39 billion, but he quickly pointed out that the corporation had also expended N1.15 trillion as cost of subsidy on petroleum products.
Confirming the development, the minister said that government will appoint external auditors to undertake the audit of NNPC’s subsidy claims.
“The committee has resolved that the corporation should review its cash flow and make a proposal for the consideration of FAAC on how it intends to repay the amount outstanding against it to the Federation Account.
“You will also recall that the corporation made some claims against the Federal Government, the resolution of which our repayment is contingent upon.
“We have asked the NNPC to forward their claims against the Federal Government to the Federal Ministry of Finance for verification by independent auditors. Arrangements are currently ongoing in the NNPC to resolve this matter as soon as possible,” he said.